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A Redditor’s post on Bengaluru restaurants that charge a 7.5 per cent service charge has recently garnered some traction online. A Redditor recently shared their plans to make a spreadsheet of restaurants that make a 7.5% service charge mandatory, so customers can avoid those eateries. However, this thread saw a lot of hot takes and comments from locals who shared their opinions on service charges, which has been a long-debated subject in the country.
“Hello, I am planning to make a G Sheet where Sheet 1 - List of restaurants where we have faced waiters/staff making it compulsory to pay 7.5% service charge. So we can avoid these restaurants Sheet 2 - If anybody knows how to raise a complaint and all, please mention the same so in case we come across any restaurant forcing us we can immediately lodge a complaint,” wrote the Redditor.
Several people chimed in sharing their experiences on Bengaluru’s service charge practises and also pointed out the restaurants which should be included in the list. However, quite a few Redditors voiced their support for the restaurant industry and admitted that they don’t mind paying for good service as long as it doesn’t feel unfair.
A service charge is an additional fee imposed by some restaurants or establishments on the total bill for services provided. It’s not a mandatory fee and though it’s part of the total bill in cafes or restaurants, customers can choose not to pay it.
The Service Charge Issue
In September last year, the Delhi High Court released an interim order directing members of the Federation of Hotel and Restaurant Association of India (FHRAI) to replace the term ‘service charge’ with ‘staff contribution’, and added that the amount charged should not exceed 10% of the total bill.
Since there are no rules or laws about the exact percentage a restaurant is allowed to charge guests and no legally binding elements as such, some eateries across the country have been known to cross the 7 per cent threshold. I
It’s important to note that post-pandemic, the service charge became a crucial component for restaurants across the country as the service charge was largely being used to incentivise the backend staff, amidst a rough time when their salaries had been slashed amid the Covic crisis.
A large section of customers are okay with paying service taxes to contribute to the welfare of the backend staff, especially across major metros. However, a few responses in the Reddit post pointed out that since there are no laws in place, chances are the service charge may not be shared with the servers or the members of the staff.
"What annoys me more than anything, after several conversations i've had with the servers at these restaurants is that they never get any share from the service charges the management collects from customers. I've had some offer to remove the service charge so I can directly tip them instead. I actually prefer to tip directly depending on how satisfied I'm with the service irrespective of the quality of food served,” comments one Redditor under the viral post. If you’re confused about how to grapple with service charges at restaurants and cafes, make a note of these basic pointers.
Voluntary Nature
According to guidelines issued by the Ministry of Consumer Affairs, the imposition of service charges by restaurants and hotels is voluntary. Consumers have the right to refuse to pay service charges if they are dissatisfied with the service.
Disclosure
Restaurants and other service providers have been encouraged to prominently display information regarding the service charge at a place visible to the consumers, to ensure transparency and inform customers about the additional charge. However, you can always check in with a restaurant about their service charge practices before you place your order. Service charges, if applied, are typically mentioned separately on the bill. This is to distinguish them from taxes and other charges.
Consumer's Right to Choose
If a customer is not satisfied with the service, they have the right to refuse to pay the service charge. The payment of the service charge is contingent upon the consumer's satisfaction with the services provided.
Not a Substitute for Tips
Service charges are not meant to be a substitute for tips. Tips, if given, are separate from service charges and are left to the discretion of the customer. If you want to tip a particular member of the staff who waited on your table, you can always level them a tip.
